Fraud case draining funds

FSU budget crisis

April 20, 2009|By Andrew Carter, Sentinel Staff Writer

TALLAHASSEE -- Amid a budget crisis perhaps more severe than any it has faced in its history, Florida State University has spent hundreds of thousands of dollars on consulting and attorney fees relating to the university's on-going academic fraud case, according to documents released to the Orlando Sentinel through public records requests.

The university this week is expected to submit its formal appeal of the NCAA Committee on Infractions' ruling that FSU must vacate the victories in 10 sports in which 61 ineligible athletes competed during 2006 and 2007. FSU officials hope the appeals process helps bring to an end an academic fraud case that has been costly to both the university's reputation and budget.

According to documents FSU released earlier this month, the university has paid more than $200,000 to The Compliance Group, the consulting firm Florida State enlisted in September 2007 to help the university through its investigation.

After the Committee on Infractions on March 6 released its ruling, Florida State entered into a contractual agreement with the Tallahassee-based Gray Robinson law firm, which is handling FSU's appeal to the NCAA.

According to the agreement between the firm and Florida State, the university has agreed to pay Gray Robinson lawyer Bill Williams $300 an hour for his work on the appeal. Andy Bardos, another of the firm's lawyers, is receiving $250 an hour for his work.

Meanwhile, Florida State University President T.K. Wetherell -- who didn't return a phone call to his office seeking comment for this story -- is attempting to lead FSU through an unparalleled budget crisis. FSU is expecting to lose tens of millions of dollars in funding from the state, and could lose as much as $50 million -- or more -- depending on the budget that passes through the state Legislature.

Such drastic cuts are likely to force FSU to eliminate academic programs and reduce its work force.

It's unclear, though, how much the cuts will affect the athletic department, which isn't funded entirely by the state. Instead, the majority of the FSU athletic department's monies come from revenue generated by Seminole Boosters, Inc., Atlantic Coast Conference television contracts for football and men's basketball and other outside sources.

Still, in an e-mail Wetherell sent last week to Athletic Director Randy Spetman and other athletic department officials, Wetherell emphasized that the budget cuts would affect the athletic department and that it's possible that coaches could be forced to go on furloughs.

Spetman, now more than a year into his tenure as Florida State's athletic director, didn't return messages left in his office and on his cell phone seeking comment for this story.

In his e-mail, Wetherell wrote, "I realize that there is no [general university funds] in athletics -- however, if anyone thinks that the boosters and athletics including coaches are not going to be involved in this pay cut and/or furloughs, he [or] she is crazy."

That e-mail came one day after FSU deputy athletic director Kellie Elliott had told the Tallahassee Democrat that coaches would likely not be subject to furloughs. Wetherell's e-mail also indicated that, unlike in previous years, the university's board of trustees would use the "the full ACC proceeds portion of revenue dedicated for the [trustees'] use."

Wetherell ended his e-mail by writing that if those in Seminole Boosters or in the athletic department found his stance unacceptable, "They can come see me with their resignation in hand."

Though the FSU athletic department isn't funded by state money, the department is still struggling financially. Ticket sales were down during football season when thousands of seats sat empty during games at Doak Campbell Stadium.

As a result, FSU was not able to meet its projected revenue of $15.9 million in football ticket sales. Overall, the athletic department projected before the 2008-09 academic year that it would generate $51.6 million in revenues -- though it could fall significantly short of that.

Once the university's academic fraud case is over for good, though, FSU will have one less expense about which to worry. According to records, The Compliance Group's services cost FSU more than $20,000 alone last October when the consulting firm was helping FSU to prepare for its appearance before the NCAA Committee on Infractions.

More recently, in January, records indicate that a 15-minute phone call that a member of The Compliance Group staff made on behalf of FSU cost the university $41.25.